There are five sectors that make up the national and the local real estate markets. Those five sectors are Industrial, Residential, Retail, Commercial and Investments which all overlap each other. Now it's time to have a look at the real estate trends for 2007.

It's important to realize that the national trends and local trends can differ dramatically depending on the economic influence such as interest rates. Right now the market is healthy and is going to continue to become even healthier throughout the year. Let's have a look at each of the sectors.

Residential: What ever you've heard about the market slumping its dead wrong. There has been no real downslide in the price of housing. The residential market is going strong and if there is a bubble it sure hasn't been deflated yet.

The strength of the market for residential housing is directly affected by the interest rates. If the interest rates climb the housing sales slump. The market also depends on unemployment rates. The lower the unemployment the higher house sales.

The housing market will decline as interest rates climb. The market also depends on unemployment rates. The lower the unemployment the higher house sales.

A market will also slump because of too many houses on the market. This will correct itself as people remove their homes from the market due to slumping prices which then brings the prices back up.

With unemployment and interest rates at an all time low the housing boom is going to continue through 2007 and most likely into 2008 so if you are in the market for a house don't be waiting for lower prices. If you don't get in now you may not be able to in just a few months.

Retail: Changing youth demographics and tends of leverage buyouts will both be factors in this sector. Private capital tends to consolidate across a single industry which results in a particular sector being very healthy. The demographic trend continues to be urbanized young households that are made up of two adults, no children, and at least one pet. As this market continues to demand more in the retail sector retail will continue to see a healthy 2007 just like 2006.

Industrial: This sector is motivated into moving sector of its company offshore to remain competitive. The higher wage demands and operating costs have resulted in these companies seeking alternatives. 2007 sees the industrial sector begin to stabilize as it finds is comfort zone from all the turmoil of 2006.

Commercial: This sector consists mostly of office buildings which have seen significant growth in the past few years. The trend for 2007 will be for increased urban growth but at a very steady pace.

Investment: The real estate investment market should follow the same path as the residential market because as long as interest rates are down investment in retail properties is a smart move. With the quickly increasing values you can buy, rent, and make a good return on your money within just a few years if you decide to sell.

There is no question that the real estate trends for 2007 are going to still see significant demand with housing prices continuing to rise. The game will be to beat the clock and buy in before prices take another significant jump upwards.